The Free Press, Mankato, MN

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    MankatoTaxes

November 29, 2008

Mankatoans’ taxes rise across the board

By Dan Linehan

MANKATO — Mankatoans’ taxes are inching up as their city, county and school district are collecting about $5.9 million more in 2009 compared to 2008, leading to a property-tax increase of $74 on a median-priced home, or about 5.5 percent.

That compares to a $24 increase last year.

Most of this year’s hike, about $46, stems from a bond increase for Mankato public schools that voters approved in April. The city of Mankato and Blue Earth County split the remaining increase of $28.

These numbers are based on a $149,200 home, roughly the median Mankato cost, that’s value doesn’t increase. And they’re based on preliminary tax increases approved by local governments in September.

Mankatoans’ property taxes are based on the taxing decisions of the city, county and school district. While some factors affect all three — especially the slowdown in residential property values — they also have unique circumstances surrounding their budgets.

The school referendum approved $33.4 million in borrowing, mostly to build a new elementary school. Not including the bond, which will be paid back over 20 years, the district’s budget rose less than 2 percent, business manager Jerry Kolander said.

Including the bond, the district’s levy rose from $13.5 million to $16.2 million, an increase of 20.3 percent.

At Blue Earth County, the tax levy will rise an estimated 8.74 percent, to $25.9 million.

That translates to a $14 tax increase on a median-priced home, to $514.32.

About 84 percent of the county’s levy increase is due to personnel costs: salary increases, a $600,000 health insurance hike and the hiring of six new employees — a dispatcher, three custody officers, a maintenance engineer and a clerical position in the sheriff’s department.

In Mankato, the tax levy is rising $908,182, to about $12 million. That will increases taxes on a median-valued home from about $450 to about $461.

Reasons for the levy increasing include debt payment ($300,000), fuel costs ($240,000) and health insurance ($180,000).

Both the city and county, which have budgeted a combined $540,000 increase for fuel costs next year, hope there’s some wiggle room now that prices have come down. But they aren’t betting on it.

“When we were preparing the budget, everything was sky-high,” County Administrator Dennis McCoy said. “Who knows what it’s gonna do in 2009?”

If You Go
Truth in taxation hearings for Mankato residents:

Mankato City Council: Monday, 7 p.m., Intergovernmental Center

Blue Earth County Board: Thursday, 6 p.m., County courthouse

Mankato Public Schools: Tuesday, 5:30 p.m., Intergovernmental Center

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